Leasing/PCP finance help!
Discussion
Bear with me if I appear naive, but I am in new territory for me - I've never leased nor had a car on PCP before.
We are buying MrsR a (brand) new car and the list price before discounts is just over 40k; discounts bring it well under 40k. We will want it for 3/4 years and we have no intention of owning it outright ever. We have got both lease and PCP quotes which are similar deposits and monthly (and about what we were hoping to pay).
Standard car tax from year 2 would be £140 and premium rate car tax from year 2 to 6 would be £450. Which one would apply, I presume the premium rate?
If so, as car tax is included in the lease, this would be cheaper by £450 x 4 years = £1800. On the other hand, if I understand correctly, with a PCP there is a chance that there will be some equity at the end of the term which may offset this.
The million dollar question is how likely is it that there will be equity and will it be worth more than £1800? Is there such a thing as a compare the lease style site or is it a case of spending an afternoon visiting websites? Can leasing companies offer better rates over the phone than they show on their websites?
If it is important, the front runner at the moment is an Evoque Landmark and the GMFV after 4 years is £19,759. We are driving a Jaguar e pace tomorrow to see how it compares.
Oh, and I don't have the option of watching out for good deals and then choosing the car. I am determined that Mrs R gets to choose whatever she wants within budget; she deserves it! I just want to get the best deal!
Many thanks
We are buying MrsR a (brand) new car and the list price before discounts is just over 40k; discounts bring it well under 40k. We will want it for 3/4 years and we have no intention of owning it outright ever. We have got both lease and PCP quotes which are similar deposits and monthly (and about what we were hoping to pay).
Standard car tax from year 2 would be £140 and premium rate car tax from year 2 to 6 would be £450. Which one would apply, I presume the premium rate?
If so, as car tax is included in the lease, this would be cheaper by £450 x 4 years = £1800. On the other hand, if I understand correctly, with a PCP there is a chance that there will be some equity at the end of the term which may offset this.
The million dollar question is how likely is it that there will be equity and will it be worth more than £1800? Is there such a thing as a compare the lease style site or is it a case of spending an afternoon visiting websites? Can leasing companies offer better rates over the phone than they show on their websites?
If it is important, the front runner at the moment is an Evoque Landmark and the GMFV after 4 years is £19,759. We are driving a Jaguar e pace tomorrow to see how it compares.
Oh, and I don't have the option of watching out for good deals and then choosing the car. I am determined that Mrs R gets to choose whatever she wants within budget; she deserves it! I just want to get the best deal!
Many thanks
I don't think anyone on here has a crystal ball that works.
Consider. 4 years means 1 year out of warranty. On a Land Rover. Brave man indeed. Any issues with the car on a lease mean its down to your account. Imagine £3k worth of repairs after 3 years 6 months - on a car you don't own, so is lost money. At least with a PVP, it is your car that you are throwing money at, and have the option of keeping it (!).
New car list over £40k is higher rate tax. Most leases have car tax included, but read the small print as some aren't.
I'm quite a fan of leasing, but only to a point - you can get some good value transport but you need to be flexible and unfussy. Your situation doesn't apply, so probably in your case, PCP is the route to pursue.
Consider. 4 years means 1 year out of warranty. On a Land Rover. Brave man indeed. Any issues with the car on a lease mean its down to your account. Imagine £3k worth of repairs after 3 years 6 months - on a car you don't own, so is lost money. At least with a PVP, it is your car that you are throwing money at, and have the option of keeping it (!).
New car list over £40k is higher rate tax. Most leases have car tax included, but read the small print as some aren't.
I'm quite a fan of leasing, but only to a point - you can get some good value transport but you need to be flexible and unfussy. Your situation doesn't apply, so probably in your case, PCP is the route to pursue.
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